Mark Cuban Stock Portfolio: 5 Stocks To Consider

4. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 146  

Uber Technologies, Inc.(NYSE:UBER) develops and operates proprietary technology applications worldwide. Mark Cuban has publicly stated many times that he passed on the chance to invest in Uber Technologies, Inc.(NYSE:UBER) when it was still a startup. An investment of $250,000 in the firm then would have been worth more than $2 billion in the present market. Cuban has also said he regrets not buying the stock at the time. 

At the end of the third quarter of 2023, 146 hedge funds in the database of Insider Monkey held stakes worth $8 billion in Uber Technologies, Inc.(NYSE:UBER), compared to 144 in the preceding quarter worth $7.6 billion. 

In its Q3 2023 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Uber Technologies, Inc. (NYSE:UBER) was one of them. Here is what the fund said:

“Uber Technologies, Inc. (NYSE:UBER): UBER was the top contributor in the quarter following a better-than-expected 2Q23 earnings report and 3Q23 guidance. Gross bookings of $33.6 billion were up 16% year over year. Mobility gross bookings of $17 billion grew 25% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $16 billion were up 12% from last year. 2Q Adjusted EBITDA of $916 million, up $552 million year over year, significantly beat Street estimates of $845 million and the company generated $1.1 billion of free cash flow. Management guided to continuing growth in 3Q Gross Bookings (17%-20% growth) and Adjusted EBITDA (of $975-1,025 million).

UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its 130 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as package and grocery delivery, travel, and worker staffing for shift work. Given its $4.3 billion of unrestricted cash and $4.4 billion of investments, the company’s enterprise value of $95 billion equates to just over 20x next year’s estimated free cash flow.”